EUR/USD fell on Monday due to a stronger US Dollar and lower chances of a rate cut by the US Federal Reserve. The currency pair dropped from its recent peak, with traders looking for a significant drop below the 1.1600 level for further losses. Last week’s resistance around the 50-day Simple Moving Average supports a bearish outlook. Daily chart indicators suggest being cautious, as the European Central Bank is likely to keep its deposit rate steady, which could help the Euro.

Support And Resistance Levels

If the pair declines further, buyers may step in around the 1.1575-1.1570 support zone. Breaking below this level could lead to more selling, targeting 1.1500 and possibly moving down to 1.1470-1.1465. On the upside, the 50-day SMA near the 1.1660-1.1665 area is a key barrier. If the pair surpasses this, it could reclaim 1.1700 and reach the 1.1755-1.1760 range, and eventually 1.1800. Currently, the US Dollar is performing best against the Australian Dollar. The heat map shows percentage changes of major currencies, comparing base and quote currencies in rows and columns.

Current Market Overview

As of November 17, 2025, the EUR/USD pair is under downward pressure, testing the 1.1600 mark due to a robust US dollar. This dollar strength is driven by expectations that the Federal Reserve will hold interest rates steady. Last week, the pair failed to break above its 50-day moving average, suggesting that the bearish trend may continue. Recent economic data supports this view. The latest US Consumer Price Index for October was 3.4%, slightly above the 3.3% forecast, and the last jobs report indicated a robust increase of 210,000 jobs. In contrast, Eurozone inflation was softer at 2.5%, giving the European Central Bank less reason to adopt a hawkish stance. This divergence between central banks is similar to trends seen in 2022, when the Fed’s tightening policies pushed the dollar significantly higher against the euro. For derivative traders, the critical support level to monitor is the 1.1575-1.1570 zone. A clear break below this could spur more selling, making put options or short futures contracts appealing, targeting around the 1.1500 level. However, caution is advised, as further declines might attract buyers. The immediate resistance to watch is the 50-day Simple Moving Average, currently around 1.1665. A sustained move above this level would weaken the bearish case and could signal closing short positions or considering call options targeting the 1.1700 level. Create your live VT Markets account and start trading now.

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